Housing equity down due to lack in activity on the market

The BBC have reported today about how the ‘lack in activity’ in the housing market is now affecting the latest injection of equity into UK homes.

The Bank Of England have commented saying that the last three months of 2011 the housing equity withdrawal remained negative.

The low levels of sales has majorly reflected the £8.5bn injection of equity, this mainly being because of high mortgage costs and home owners struggling with costs.

After the financial crisis hit the country in 2008 property owners have stopped taking on more debt by moving into a bigger property and buying extravagant items such as brand new cars. People are now trying to concentrate more on getting back on track with mortgage repayments.